North Carolina Down Payment Support Programs

Online Merchant account - These programs would be the Down Payment Assistance System as well as the Mortgage Credit Certificate.

You also buy a house and December 1, 2009 and should you qualify for one of those plans, you could also qualify for the $8,000 tax credit only enacted into law.

First, who's a First Time Home Buyer? A First Time Home Buyer is someone who has not owned a home in the previous three years. This is the exact same qualifying definition.

A Mortgage Credit Certificate (MCC) is a national tax credit to help home buyers with low and moderate incomes. All home owners can claim an itemized deduction.

In case you qualify for the MCC, you'll be able to claim 20% of the interest you pay as a credit on your own federal income taxes on your own mortgage. You are able to save as much as $2,000 on your taxes.

You will have the ability to combine this with the $8,000 tax credit if you do qualify for the MCC, for 2009. This might reduce the tax liability of a buyer's by $10,000.

Who Qualifies for an MCC?

Who qualifies for an MCC is based on the purchase price of the house and also your income you are purchasing. Household income is defined as the “gross income of the mortgagor and every other individual anticipated to live in the residence who's 18 years of age or older.”

The income and house price limits Durham and Chatham Counties are given below.

MCC Income Limitations 1 Person $61,500 2 Men $61,500 3 Men $70,500 4 Persons $70,500

MCC Sales Price Limits New Dwelling $220,000 Existing House $210,000

The purchaser only has to pay $1,000 of their own funds and the load would pay as much as $8,000 of the remaining balance.

This plan has more rigorous income limitations than the MCC program outlined above. Like the MCC application, it can be utilized along with the new $8,000 tax credit on home purchases between December 1, 2009 and January 1, 2009. The deposit assistance, nevertheless, cannot be applied in conjunction with the MCC. This is an either or scenario.

House price limitations that apply in Durham, Orange and Chatham Counties and the income are given below.

Down Payment Assistance Income Limits

1 Man $39,950 2 Men $45,650 3 Persons $51,350 4 Men $57,050

Down Payment Assistance Sales Cost Limits New Dwelling $210,000 Existing House $210,000